SURTHI ENTERPRISES

Detailed Project Report

 Table of Contents

Applicant Profile.............................................................................................................................. 2

Existing Banking Arrangements ..................................................................................................... 4

Project Details.................................................................................................................................. 5

Proposed Project Cost ..................................................................................................................... 8

Identification Of Project Site .........................................................................................................10

Global Market Analysis .................................................................................................................12

Indian Market Analysis ..................................................................................................................15

Industry Analysis ............................................................................................................................17

Cluster Analysis ..............................................................................................................................19

Annexure -I.....................................................................................................................................21

1
 Chapter 1
Applicant Profile

Vision:

Our vision is to be a leading provider of premium-quality organic manure, contributing to

enhanced soil fertility and promoting sustainable agricultural practices globally.

Mission:

Our mission is to produce organic compost of the highest quality, leveraging natural sources
such as food scraps, crop leftovers, animal excrement, and green debris. Through our products,
we aim to support environmentally-friendly farming practices, foster soil health, and empower
agricultural communities to thrive sustainably.

Table 1: Applicant Details

S Particulars Details
N
i. Name of the Applicant Surthi Enterprises

ii. Constitution Legal Status of Applicant:

(i.e. Govt. organization, NGO, Co-operative society, Proprietorship
Company, partnership firm, proprietorship firm,
Individual, FPO, Self Help Group, etc.)
iii. Registration No. of Applicant/CIN UDYAM-TS-02-0105726
iv. GST No. of Applicant 36ODNPS3502M1ZR
v. Date of Establishment/ Incorporation 18/11/2021
vi. Address of the registered office 13-2-601/155-A, Dhoolpet, Raheempura,
manglhat,Hyderabad, Telangana, 500006
vii PAN No. of Applicant -
vii Address of the proposed site 13-3-747/3, Durga Nagar, ziaguda,
i.
Hyderabad Telangana 500006
ix. District Hyderabad
x. State Telangana
xi. Pin Code 500006
xii Whether lead promoter belong to SC/ ST/ General
. Woman/Minority

2
 Table 2: Contact Details of Proprietor

SI Name of Address Mobile No. Email Id

No. Partners

1. Surthi Vishal S/O Surthi Venkatesh 13-2- 81258 06411 sreeudaya0922@gmail.com

258/A/2/1 balaji nagar,
Rahimpura, Asifnagar, Karwan
Sahu, Hyderabad, Andhra
Pradesh-500006

SI Name of Aadhaar PAN Academic Din No. Profit

No. Partners No. No. and Sharin
technical g
Qualificatio Ratio
n
1. Surthi Vishal 980799425787 ODNPS3502M Graduate - 100%

3
Chapter 2
Existing Banking Arrangements

Table 3: Bank Loan and Credit Facility

S. Types of Name of Limits Securities Rate of Repayment Purpose

No. Facility Bank interest terms
and
Branch
1. Cash Credit N/A N/A N/A N/A N/A N/A
2. Term Loan N/A N/A N/A N/A N/A N/A
3. Unsecured N/A N/A N/A N/A N/A N/A
Loan

4
 Chapter 3
Project Details

Objective of the Proposed Project:

Our goal is to produce premium-quality organic manure designed to improve soil fertility and
promote sustainable agricultural practices. This organic manure, also referred to as organic
compost, are crafted from natural sources like food scraps, crop leftovers, animal excrement, and
green debris. Our core objectives encompass the following:

− Promoting Sustainable Agriculture: Our primary aim is to advocate for sustainable

farming practices by offering a natural, eco-friendly substitute to chemical fertilizers.
Organic manure enhances soil structure, nutrient levels, and water retention, resulting in
healthier crops and increased yields.
− Environmental Preservation: We are dedicated to contributing to environmental
preservation by diminishing reliance on synthetic fertilizers, which can negatively impact
soil health, water quality, and biodiversity. The recycling of organic waste into organic
manure reduces waste generation and diverts organic materials away from landfills.
− Enhancing Soil Health: Our central focus revolves around enriching the soil with organic
matter and essential nutrients, such as nitrogen, phosphorus, and potassium. These
nutrients are released gradually, providing enduring benefits to both the soil and crops.
− Nutrient Reutilization: We strive to establish a closed-loop system wherein organic waste
from farms, households, and industries is collected and transformed into nutrient -rich
compost. This encourages the efficient recycling of valuable resources and minimizes
waste.
− Improving Crop Quality: The utilization of organic manure contributes to superior crop
quality and flavor. It plays a pivotal role in producing healthier and more nutritious food
products for consumers.

Hence, the applicant intends to make an application under the Scheme of National Agriculture
Infra Financing Facility in order to get government support and financial assistance and avail
the benefit of interest subvention.

5
Proposed Infrastructure:

S. No. Component Mark Tick ( )

1. Organic Input Production Unit ( )

Type of operating model: Captive Model

Land Details:

S. No. Particulars Details

1 Status of legal title & possession Leased

2 Period of Lease 1 Years

3 Co-ordinates of location
17.367886975814802, 78.45455180940462

State Highway 233 - 144 Km.

4 Connectivity to roads
National Highway 27 - 251 Km

5 Availability of power Yes

6 Availability of water Yes

Process Flowchart:

List of raw materials for the proposed product:

− Humic acids
− Fulvic acids
Bio stimulants
− Seaweed extracts
− Amino acids
6
 − Plant growth-promoting substances (e.g., cytokinins, auxins)
− Beneficial microorganisms (e.g., mycorrhizal fungi, rhizobacteria
− Microbial agents (e.g., bacteria, fungi, viruses)
Bio pesticides − Botanical extracts (e.g., neem oil, pyrethrum)
− Insect pheromones
− Biorational chemicals (e.g., insecticidal soaps, horticultural oils)
− Stabilizers
Formulation Aids − Thickeners
− Preservatives
− Macro and micronutrients (for bio stimulants)
Nutrient Sources
− Nitrogen, phosphorus, potassium (for plant growth)
− Fillers
Inert Ingredients − Carriers
− Diluents
Coloring and Odor − Additives to improve the appearance and smell of the
Masking Agents formulation
Surfactants − Enhance the efficacy and absorption of the formulation

7
 Chapter 4
Proposed Project Cost

Cost of Project: (Rs. In lakhs)

COST OF PROJECT & MEANS OF FINANCE

(in INR in Lakhs unless otherwise stated)

A Cost of Project Amount

Technical Civil Work 72.72
Plant & Machinery 150.00
Interest During Construction 1.00
Pre-Operative Expenses 0.50
Logistics & Transportation 0.50
Total Project Cost 224.72

List of Machineries:

Sr. No. Description Unit Price Quantity Total

Price
1 1 KL Reactor with Limpet Coil 13,50,000.00 2 27,00,000.00
2 3 KL Reactor with Limpet Coil 19,00,000.00 2 38,00,000.00

3 5 KL Reactor with Limpet Coil 25,50,000.00 1 25,50,000.00

4 5 KL Reactor with Limpet Coil 32,95,000.00 1 32,95,000.00

Total Price 1,23,45,000.00

Packing & Forwarding Charges 3% 3,70,350.00

Gross Total 1,27,15,350.00

GST (18%) 18% 22,88,763.00

Grand Total 1,50,04,113.00

Means of Finance: (Rs. In lakhs)

COST OF PROJECT & MEANS OF FINANCE
(in INR in Lakhs unless otherwise stated)
B Means of Finance %age Amount
Promoters Contribution 11% 24.72
Term Loan 89% 200.00

Total Means of Finance 224.72

Term Loan Used Finance assets 0.90

8
 Financial Parameters:

CRITICAL RATIOS
(in ₹ In crores unless otherwise stated)
3/31/202 3/31/202 3/31/202 3/31/202 3/31/202 3/31/203 3/31/203 3/31/203
Particulars 5 6 7 8 9 0 1 2

DEBT SERVICE
COVERAGE
RATIO

Profit After Tax 32.18 65.23 113.27 176.16 254.79 355.37 451.88 564.01
Tax Expense 14.59 35.68 61.96 96.36 139.38 194.40 247.19 308.53
Depreciation 22.55 20.29 18.26 16.44 14.79 13.31 11.98 10.78
Amortisation 0.10 0.10 0.10 0.10 0.10 - - -
Interest on term
Loan 20.17 21.72 18.50 14.50 10.50 6.50 2.50 0.03
Total 89.58 143.03 212.09 303.56 419.56 569.58 713.55 883.35

Repayment of
Term Loan - 15.15 36.36 36.36 36.36 36.36 36.36 3.03
Interest on
Term Loan 20.17 21.72 18.50 14.50 10.50 6.50 2.50 0.03
Total 20.17 36.87 54.86 50.86 46.86 42.86 38.86 3.06

Debt Service
Coverage Ratio 4.44 3.88 3.87 5.97 8.95 13.29 18.36 288.86
Average DSCR 43.45

RETURN ON CAPITAL EMPLOYED

Profit After Tax 32.18 65.23 113.27 176.16 254.79 355.37 451.88 564.01
Tax Expense 14.59 35.68 61.96 96.36 139.38 194.40 247.19 308.53
Finance Cost 20.17 21.72 18.50 14.50 10.50 6.50 2.50 0.03
EBIT 66.93 122.64 193.73 287.02 404.67 556.26 701.57 872.57

Total Assets 283.26 338.54 421.60 568.55 795.44 1,124.28 1,547.38 2,117.03
Current Liabilities (26.37) (31.56) (37.72) (44.88) (53.34) (63.17) (70.77) (79.43)
Capital Employed 256.90 306.98 383.88 523.67 742.10 1,061.10 1,476.62 2,037.60

Return on Capital Employed 0.26 0.40 0.50 0.55 0.55 0.52 0.48 0.43
Average ROCE 46.07%

INTERNAL RATE OF RETURN

Change in Capital Employed (256.90) (50.08) (76.90) (139.79) (218.43) (319.00) (415.51) (560.98)
EBITDA 89.58 143.03 212.09 303.56 419.56 569.58 713.55 883.35

9
 Net Cash Flow (167.32) 92.95 135.19 163.76 201.13 250.57 298.04 322.37

IRR 0.80

Term Loan

Year Ending => 3/31/2025 3/31/2026 3/31/2027 3/31/2028 3/31/2029 3/31/2030 3/31/2031 3/31/2032
Year 1 2 3 4 5 6 7 8
No. of Months 12 12 12 12 12 12 12 12
Repayment Month 11 12 12 12 12 12 12 1
Principal Repayment 0.00 15.15 36.36 36.36 36.36 36.36 36.36 3.03
Principal
Outstanding 200.00 184.85 148.49 112.12 75.76 39.39 3.03 0.00
Interest Payment 15.77 16.98 14.46 11.34 8.21 5.08 1.95 0.02

Statement of Repayment of Term Loan & Interest Calculation

(Amount in INR in Lakhs unless otherwise stated)
Rate of Interest 8.60%
Year Year Month Opening Principal Interest Instalments Closing
1 May-24 1 200.00 0.00 1.43 1.43 200.00
1 Jun-24 2 200.00 0.00 1.43 1.43 200.00
1 Jul-24 3 200.00 0.00 1.43 1.43 200.00
1 Aug-24 4 200.00 0.00 1.43 1.43 200.00
1 Sep-24 5 200.00 0.00 1.43 1.43 200.00
1 Oct-24 6 200.00 0.00 1.43 1.43 200.00
1 Nov-24 7 200.00 0.00 1.43 1.43 200.00
1 Dec-24 8 200.00 0.00 1.43 1.43 200.00
1 Jan-25 9 200.00 0.00 1.43 1.43 200.00
1 Feb-25 10 200.00 0.00 1.43 1.43 200.00
1 Mar-25 11 200.00 0.00 1.43 1.43 200.00
2 Apr-25 12 200.00 0.00 1.43 1.43 200.00
2 May-25 13 200.00 0.00 1.43 1.43 200.00
2 Jun-25 14 200.00 0.00 1.43 1.43 200.00
2 Jul-25 15 200.00 0.00 1.43 1.43 200.00
2 Aug-25 16 200.00 0.00 1.43 1.43 200.00
2 Sep-25 17 200.00 0.00 1.43 1.43 200.00
2 Oct-25 18 200.00 0.00 1.43 1.43 200.00
2 Nov-25 19 200.00 3.03 1.43 4.46 196.97
2 Dec-25 20 196.97 3.03 1.41 4.44 193.94
2 Jan-26 21 193.94 3.03 1.39 4.42 190.91
2 Feb-26 22 190.91 3.03 1.37 4.40 187.88
2 Mar-26 23 187.88 3.03 1.35 4.38 184.85
3 Apr-26 24 184.85 3.03 1.32 4.36 181.82
3 May-26 25 181.82 3.03 1.30 4.33 178.79

10
3 Jun-26 26 178.79 3.03 1.28 4.31 175.76
3 Jul-26 27 175.76 3.03 1.26 4.29 172.73
3 Aug-26 28 172.73 3.03 1.24 4.27 169.70
3 Sep-26 29 169.70 3.03 1.22 4.25 166.67
3 Oct-26 30 166.67 3.03 1.19 4.22 163.64
3 Nov-26 31 163.64 3.03 1.17 4.20 160.61
3 Dec-26 32 160.61 3.03 1.15 4.18 157.58
3 Jan-27 33 157.58 3.03 1.13 4.16 154.55
3 Feb-27 34 154.55 3.03 1.11 4.14 151.52
3 Mar-27 35 151.52 3.03 1.09 4.12 148.49
4 Apr-27 36 148.49 3.03 1.06 4.09 145.46
4 May-27 37 145.46 3.03 1.04 4.07 142.42
4 Jun-27 38 142.42 3.03 1.02 4.05 139.39
4 Jul-27 39 139.39 3.03 1.00 4.03 136.36
4 Aug-27 40 136.36 3.03 0.98 4.01 133.33
4 Sep-27 41 133.33 3.03 0.96 3.99 130.30
4 Oct-27 42 130.30 3.03 0.93 3.96 127.27
4 Nov-27 43 127.27 3.03 0.91 3.94 124.24
4 Dec-27 44 124.24 3.03 0.89 3.92 121.21
4 Jan-28 45 121.21 3.03 0.87 3.90 118.18
4 Feb-28 46 118.18 3.03 0.85 3.88 115.15
4 Mar-28 47 115.15 3.03 0.83 3.86 112.12
5 Apr-28 48 112.12 3.03 0.80 3.83 109.09
5 May-28 49 109.09 3.03 0.78 3.81 106.06
5 Jun-28 50 106.06 3.03 0.76 3.79 103.03
5 Jul-28 51 103.03 3.03 0.74 3.77 100.00
5 Aug-28 52 100.00 3.03 0.72 3.75 96.97
5 Sep-28 53 96.97 3.03 0.69 3.73 93.94
5 Oct-28 54 93.94 3.03 0.67 3.70 90.91
5 Nov-28 55 90.91 3.03 0.65 3.68 87.88
5 Dec-28 56 87.88 3.03 0.63 3.66 84.85
5 Jan-29 57 84.85 3.03 0.61 3.64 81.82
5 Feb-29 58 81.82 3.03 0.59 3.62 78.79
5 Mar-29 59 78.79 3.03 0.56 3.59 75.76
6 Apr-29 60 75.76 3.03 0.54 3.57 72.73
6 May-29 61 72.73 3.03 0.52 3.55 69.70
6 Jun-29 62 69.70 3.03 0.50 3.53 66.67
6 Jul-29 63 66.67 3.03 0.48 3.51 63.64
6 Aug-29 64 63.64 3.03 0.46 3.49 60.61
6 Sep-29 65 60.61 3.03 0.43 3.46 57.58
6 Oct-29 66 57.58 3.03 0.41 3.44 54.55
6 Nov-29 67 54.55 3.03 0.39 3.42 51.52
6 Dec-29 68 51.52 3.03 0.37 3.40 48.49
6 Jan-30 69 48.49 3.03 0.35 3.38 45.45
6 Feb-30 70 45.45 3.03 0.33 3.36 42.42
6 Mar-30 71 42.42 3.03 0.30 3.33 39.39
7 Apr-30 72 39.39 3.03 0.28 3.31 36.36
7 May-30 73 36.36 3.03 0.26 3.29 33.33
11
 7 Jun-30 74 33.33 3.03 0.24 3.27 30.30
7 Jul-30 75 30.30 3.03 0.22 3.25 27.27
7 Aug-30 76 27.27 3.03 0.20 3.23 24.24
7 Sep-30 77 24.24 3.03 0.17 3.20 21.21
7 Oct-30 78 21.21 3.03 0.15 3.18 18.18
7 Nov-30 79 18.18 3.03 0.13 3.16 15.15
7 Dec-30 80 15.15 3.03 0.11 3.14 12.12
7 Jan-31 81 12.12 3.03 0.09 3.12 9.09
7 Feb-31 82 9.09 3.03 0.07 3.10 6.06
7 Mar-31 83 6.06 3.03 0.04 3.07 3.03
8 Apr-31 84 3.03 3.03 0.02 3.05 0.00

Chapter 5
Identification of Project Site

The project has been proposed at 13-3-747/3, Durga Nagar, ziaguda, Hyderabad Telangana 500006

Figure 1: Google map location of the project site

Co-ordinates: 17.367886975814802, 78.45455180940462

The above-mentioned land has been obtained on lease for a duration of 5 years.
12
Figure 2: Distance of amenities from project location

13
14
The State Highway, is at a distance of 144 Km. Also, the National Highway is at a nearest
distance of 251 Km from the project site.

Hence, the project land has good connectivity of basic amenities viz., State Highway and
National Highway at a nearest distance range between 1 Km to 5 Km. Therefore, the company
might not face any difficulty in transportation of raw materials or finished goods.

15
 Chapter 6
Global Market Analysis

Global Market Analysis

The global Organic Manure market was valued at $184.60 Billion in 2021, and is projected to
reach $251.57 billion by 2030, growing at a CAGR of 3.55% from 2022 to 2030. Organic
Manure of synthetic or natural origin are applied to soil or plant tissue to increase crop
performance by enabling plant growth nutrients. Organic Manures are made from agricultural
residues, toxic pollution, municipal silt, or animal waste, these Organic Manures increase soil
water retention capacity, promote microorganism reproduction and improver soil physical and
chemical properties.

The Organic Manure market was valued at $8.3 billion in 2020 and is anticipated to generate
15.9 billion by 2030. The market is projected to experience growth at a CAGR of 5.9%
from 2021 to 2030. The world population is growing at the rate of 1.05%.

Organic Manure Market Size surpassed USD 190 billion in 2020 and will grow at a CAGR of
2.6% from 2022 to 2030. Growing population followed by changing dietary habits in developed
as well as developing nations to contribute growth of Organic Manure industry over the coming
years. The market size is projected to reach 545,346.5 Kilo Tons while recording a CAGR of
2.4% in terms of volume.

Natural and synthetic Organic Manures are used to plant tissues or soil to provide one or more
nutrients to plants that are required for their growth. Increasing need for enhanced soil nutrients

16
coupled with increased crop yield are expected to further increase demand for Organic Manures
over the forecast period. Growing penetration of Organic Manures are expected to encourage
farmers to use Organic Manures more efficiently and safely.

Figure 3: Global Organic Manure Market

The worldwide agricultural industry is confronted with numerous issues. According to the
United Nations, by 2050, the world population will have surpassed nine billion people. This
will put a lot of pressure on the agricultural business, which is already suffering from a loss of
productivity due to manpower shortages and the shrinkage of agricultural fields as a result of
rapid urbanization. According to the Food and Agriculture Organization, more than 70% of the
world's population will live in cities by 2050. Farmers are being forced to use Organic Manures
to enhance their agricultural output due to a loss of arable land across the globe.

Around the world, several government and non-government organizations are raising
awareness about Organic Manure use and its favorable impact on agricultural output. The
Organic Manure market is predicted to benefit from the promotion of Organic Manures through
radio, television, and rural centers. Furthermore, rising rural incomes, as well as the ease and
quick availability of credit, are expected to boost revenue generation. Lack of understanding
about Organic Manure usage, are having a harmful influence on soil and human health. Farmers
prefer to overuse Organic Manures in order to boost their yield, which is harmful to the
environment. The absence of personal safety kits for handling and applying Organic Manures
has a negative impact on the human body.

17
 Figure 4: Fertilizer Market, By Application, 2030 (USD Million)

The agriculture segment will generate over USD 100 billion by 2030. The Organic Manure
industry is likely to be driven by Organic Manure applications in agricultural activities such as
cultivating plants and basic food crops. Furthermore, increasing demand for rice, maize, wheat,
millets, paddy, and barley in developed as well as developing economies would push Organic
Manure market in coming years. By 2030, Organic Manure usage for agriculture applications
will be driven using Organic Manures in agricultural areas to replenish essential minerals
present naturally in the soil, such as nitrogen, phosphorus, and potassium.

18
 Chapter 7
Indian Market Analysis

Indian Market Analysis

The India Organic Manure market is predicted to expand at 7% CAGR and reach a valuation
of US$ 1.13 Bn by 2032-end. North India is anticipated to remain a key region in the Organic
Manure business in the country, and the regional market is estimated to surge at a CAGR
of 7.1% through 2032. Sales of Organic Manures increased at 4.8% CAGR between 2017 and
2021, with states such as Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, Uttar Pradesh,
and Orissa accounting for a substantial portion of the Indian market. Government initiatives
and subsidies promoting Organic Manure usage in India along with increasing consumption of
organic food in the country are set to drive consumption of Organic Manures across application
areas. Well-structured and efficient supply chain network, expansion in production capacity,
and crop-specific Organic Manure production are expected to remain the key growth strategies
of Indian manufacturers of Organic Manures.

Despite a strong growth in recent years, the average intensity of Organic Manure use in India
remains much lower than most of the developed and emerging countries around the world. The
usage of Organic Manures is also highly skewed, with wide inter-regional, inter-state and inter-
district variations.

Increasing Agricultural Production

According to the Indian Economic Survey 2021-2022, the country's agriculture sector’s gross
value added (GVA) experienced growth over the previous two years. It grew at 3.9% in 2021-
22 and 3.6% in 2020-21. According to the Food and Agriculture Organization, the production
in the country increased despite the area under cultivation decreasing. Rice production
increased from 177.6 million ton in 2019 to 178.3 million ton in 2020, while wheat production
increased from 103.5 million ton in 2019 to 107.5 million ton in 2020.

Good monsoon, various government measures to enhance credit availability, improve

investments, create market facilities, promote infrastructure development, and increase the
provision of quality inputs to the sector helped increase the sector’s productivity.

19
 Figure 5: India Organic Manure Market: Production volume in million MT, Rice Wheat

Vermicompost has been emerging as an important source in supplementing and substituting

chemical Organic Manures in agriculture. Vermicompost, also known as ‘farmers' friend’ is
used for general crops and plantation crops. It is a valuable input for sustainable agriculture
and wasteland development. It is a growth promoter and helpful in providing hormones
required for plant growth. There is a lot of demand for vermicompost among farmers as its use
increases quality of agricultural products and its price is also cheaper. It is also used widely in
pot culture and in-home gardens. In addition, many government departments including
agriculture, forest and horticulture buy it in bulk. Its demand has decreased over the years.
Government agencies and NGOs are popularizing organic agriculture using vermicompost by
organizing awareness campaigns and film show in rural and urban areas.

Market Drivers

− Catalyzed by a strong growth in the country’s population over the next five years, food
demand is also expected to exhibit a strong growth. Conversely, as a result of increasing
urbanization levels, available arable land is expected to decrease. We expect Organic
Manures to play a key role in increasing the average crop yields per hectare.
− Despite strong historical growth, Organic Manure consumption in India remains highly
skewed. There are currently a number of states in India which still have a very low
penetration of Organic Manures. This leaves a lot of room for future growth.
− We expect a number of government and non-government awareness campaigns to educate
farmers on the benefits of Organic Manures. Promotion of Organic Manures through
television, radio and customized rural workshops are also anticipated to increase the
consumption of Organic Manures in the coming years.

20
 Chapter 8
Industry Analysis

Government is promoting Organic Farming to substitute the use of chemical pesticide and
fertilizer for reduced health hazard, safety and healthy and sustainable production through
dedicated schemes.

Production of organic fertilizer in India

4000
3387.20

3200
PRODUCTION (LAKH MT)

2803.01
2547.88

2400

1600

800 605.08
411.00
38.79
0
2015 - 16 2016 - 17 2017 - 18 2018 - 19 2019 - 20 2020 - 21

In 2020–21, India produced 3.88 million tonnes of organic fertilizers, a dramatic decrease from
338.72 million tonne in 2017–18. In 2017–18, Bihar led with 30 per cent production of organic
fertilizers in India and was followed by Gujarat and Jharkhand. In 2018–19, Karnataka was the
biggest producer of organic fertilizers, with a 94 per cent share in countrywide production. The
state continued to be the leading producer in 2019–20, but its share dropped to 64 per cent. In
that year, Andhra Pradesh had the second biggest share. In 2020–21, with a share of 63 per
cent, Chhattisgarh led the countrywide production or organic fertilizers and Karnataka slipped
to the second spot. The reasons for the steep fall in national production of organic fertilizers
within a span of three years, or the manner in which state-wise shares in the total production
have changed substantially between years, are not clear. In 2017–18, farm yard manure had the
highest share with 56 per cent in the total organic fertilizers produced in India, followed by
vermicompost with 23 per cent. Organic manure had a share of 11 per cent and city compost,
only 3 per cent.

21
In 2017–18, Bihar had a share of 30 per cent in the countrywide production of organic
fertilizers, followed by Gujarat, with a 15 per cent share, and Jharkhand, with a 12 per cent
share. Three other states had more than 5 per cent share each and another 11 states have more
than 1 per cent share each in the total organic fertilizer production in India.

In 2018–19, the scenario changed completely. In that year, Karnataka was responsible for 94
per cent of organic fertilizer production in India. Tamil Nadu and Telangana were the only
other states that contributed more than 1 per cent to the countrywide organic fertilizer
production.

In 2019–20, Karnataka continued to be the leading producer of organic fertilizers in India, but
its share had dropped to 64 per cent. With a 13 per cent share in national production, Andhra
Pradesh came in second, followed by seven states with a share of more than 1 per cent each.

In 2020-21, with a 63 per cent share, Chhattisgarh was the leading producer of organic
fertilizers, followed by Karnataka, with an 8 per cent share, and another 12 states with more
than 1 per cent share each. In decreasing order of their share, these states are Assam,
Maharashtra, Tamil Nadu, Bihar, Madhya Pradesh, Nagaland, West Bengal, Punjab, Odisha,
Kerala, Gujarat and Rajasthan.

Share of different types of organic fertilizers in 2017–18

The latest year for which information on

share of different organic fertilizers in
the total production is available is
2017–18. The total production in that
year was 3,387 lakh tonnes. Farm yard
manure had the highest share of 56 per
cent in it, followed by vermicompost,
with a 23 per cent share. Organic
manure had a share of 11 per cent in
total organic fertilizer production and
city compost only 3 per cent.

22
 Chapter 9
Cluster Analysis

Agriculture in India

India ranks second worldwide in farm outputs. Agriculture is demographically the broadest
economic sector and plays a significant role in the overall socio-economic fabric of India. India
ranks first in the world with highest net cropped area followed by US and China. The
contributions of agriculture in Indian economy have been increasing over the years. According
to the economic survey, the share of agriculture in gross domestic product has reached almost
20% for the first time in last 17 years.

Agriculture is demographically the broadest economic sector and plays a significant role in the
overall socio-economic fabric of India. India ranks first in the world with the highest net
cropped area followed by US and China. The contributions of agriculture to the Indian
economy have been increasing over the years. According to the economic survey, the share of
agriculture in the gross domestic product has reached almost 20% for the first time in the last
17 years making a sole bright spot in performance during the financial year 2020-2021. India
has the second largest arable land resource in the world. With 20 Agri-climatic regions, all the
15 major climates in the world exist in India.

Agriculture is the primary source of livelihood for about 58% of India’s population. Gross
value added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore. (US$
276.37 billion) in FY20. Share of agriculture and allied sectors in gross value added (GVA) of
India at current prices stood at 17.8% in FY20.

Food grains production in India

India is the world’s largest producer of milk, pulses and jute and ranks as the second largest
producer of rice, wheat, sugarcane, groundnut, vegetables, fruit, and cotton. It is also one of
the leading producers of spices, fish, poultry, livestock, and plantation crops. The total food
grains production was recorded of 296.65 million tonnes during the year 2020-21. Out of which
the total cereals production was recorded of 273.50 million tonnes, while the total production
of pulses was recorded of 10.60 million tonnes during the year 2020-21.

Figure 7: Food grains bifurcation

23
 In FY21, the total food grains production
was recorded at 303.34 million tonnes Out

8% Cereals of which, 92% is covered by the cereals and

Pulses the remaining 8% is the production of pulses
92%
under which the major crops are Wheat,
Jowar, Bajra, Ragi and Maize.

Figure 9: Production of cereals (2019-20)

140
118.43
120
107.59

100
Million Tonnes

80

60

40 28.64

20 10.28
4.73 1.74 1.69
0
Rice Wheat Jowar Bajra Ragi Maize Barley

Source: https://agricoop.nic.in/sites/default/files/FirstEstimate2020-21.pdf

The graph shows the production of cereals in the year 2019-20. Among the cereals, rice and
wheat are the major produced crop during the year, covering about 80% of the total production
of cereals, amounting to 118.43 million tonnes and 107.59 million tonnes, respectively.

24
 Annexure -I

Profit and Loss Statement: (Rs. In lakhs)

Profit & Loss Statement

All Amount In INR In Lakhs unless otherwise stated
Sl. Particulars 3/31/202 3/31/202 3/31/202 3/31/202 3/31/202 3/31/203 3/31/203 3/31/203
5 6 7 8 9 0 1 2
N
o
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)

1 Revenue from Operations

i) Sales
a Domestic Sales 648.00 810.81 1008.52 1248.05 1537.59 1886.92 2179.39 2517.19
b Export Sales
Total Revenue from Operations 648.00 810.81 1008.52 1248.05 1537.59 1886.92 2179.39 2517.19

2 Cost of Sales
iv Cost of Sales 475.20 567.57 675.13 797.03 938.18 1097.42 1209.70 1334.78
)

Total Cost of Sales 475.20 567.57 675.13 797.03 938.18 1097.42 1209.70 1334.78

Gross Profit 172.80 243.24 333.40 451.02 599.42 789.49 969.68 1182.42
3 Selling, General & Admn.Exp.

Repair & Maintenance 4.05 3.75 3.48 3.22 2.99 2.77 2.57 2.38

25
 Insurance Expenses 0.20 0.18 0.16 0.15 0.13 0.12 0.11 0.10
Marketing Expenses 32.40 40.54 50.43 62.40 76.88 94.35 108.97 125.86
Other Selling & Admin OH 25.92 34.05 44.48 57.79 74.76 96.33 116.82 141.68
Salaries & wages 20.64 21.67 22.76 23.89 25.09 26.34 27.66 29.04
Depreciation 22.49 20.24 18.21 16.39 14.75 13.28 11.95 10.75
Amortisation 0.10 0.10 0.10 0.10 0.10 0.00 0.00 0.00

Total Selling, General & 105.80 120.54 139.61 163.95 194.70 233.19 268.08 309.81
Admn.Exp.

4 Operating Profit before Interest 67.00 122.71 193.78 287.07 404.72 556.31 701.61 872.61
[1(iii) - 2(xiii) - 3]

5 Interest
i) On Term Loans 15.77 16.98 14.46 11.34 8.21 5.08 1.95 0.02
ii On Working 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Capital
iii) on Others
Total Interest 15.77 16.98 14.46 11.34 8.21 5.08 1.95 0.02
6 Operating Profit after Interest 51.24 105.72 179.32 275.74 396.51 551.23 699.65 872.58
& depreciation (4-5)
7 Add : Non operating Income 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Less: Non Operating Expenses 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
8 Profit before Tax/Loss 51.24 105.72 179.32 275.74 396.51 551.23 699.65 872.58
9 Tax Expense
Current Tax 15.99 37.38 63.41 97.50 140.21 194.91 247.40 308.55
Deferred Tax 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
10 Profit after Tax 35.25 68.34 115.91 178.24 256.30 356.31 452.25 564.04
Dividend / Withdrawals
11 Retained Profit 35.25 68.34 115.91 178.24 256.30 356.31 452.25 564.04
12 Retained Profit/Net Profit 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
26
Balance Sheet: (Rs. In lakhs)
Balance Sheet
All Amount in INR in Lakhs unless otherwise stated
(Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.) (Proj.)
2025 2026 2027 2028 2029 2030 2031 2032
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings from banks 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Sundry Creditors 26.37 31.56 37.71 44.87 53.34 63.17 70.77 79.43
Provision for taxation
Term loan
Vehicle Loan
Deferred Tax Liability 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other current liabilities & provisions
Total Current Liabilities 26.37 31.56 37.71 44.87 53.34 63.17 70.77 79.43

TERM LIABILITIES
Term Loan 200.00 184.85 148.49 112.12 75.76 39.39 3.03 0.00
Vehicle Loan
Unsecured Loans
Other Term Liabilities
Total Term Liabilities 200.00 184.85 148.49 112.12 75.76 39.39 3.03 0.00
TOTAL OUTSIDE LIABILITIES (10+17) 226.37 216.41 186.20 157.00 129.10 102.57 73.80 79.43

SHAREHOLDER'S FUND
Share Capital 24.72 24.72 24.72 24.72 24.72 24.72 24.72 24.72
Reserves & Surplus 35.25 103.59 219.50 397.74 654.04 1010.35 1462.61 2026.65
Shareholder's Fund 59.97 128.31 244.22 422.46 678.76 1035.07 1487.33 2051.37
TOTAL LIABILITIES (18+24) 286.34 344.72 430.42 579.45 807.86 1137.64 1561.12 2130.80
ASSETS

27
CURRENT ASSETS
Cash & Bank Balance 73.08 148.48 245.79 403.22 637.88 971.93 1399.40 1966.51
Fixed deposits with banks 0.00 1.00 5.00 10.00 15.00 20.00 25.00 35.00
Receivables 1.78 2.22 2.76 3.42 4.21 5.17 5.97 6.90
Inventory
Consumables 9.11 10.88 12.95 15.29 17.99 21.05 23.20 25.60
Work in Progress 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Finished Goods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Cold Store & Other Stores 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Total Current Assets 83.97 162.59 266.50 431.93 675.08 1018.14 1453.58 2034.01

Fixed Assets
Gross Block (WDV) 224.86 224.86 224.86 224.86 224.86 224.86 224.86 224.86
Depreciation 22.49 42.72 60.94 77.33 92.08 105.36 117.31 128.06
Net Block 202.37 182.13 163.92 147.53 132.77 119.50 107.55 96.79

Intangible Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Non-Current Investments 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Security Deposit
Other Non-current assets

TOTAL ASSETS (34+35+39+40) 286.34 344.72 430.42 579.45 807.86 1137.64 1561.12 2130.80

TANGIBLE NET-WORTH 59.97 128.31 244.22 422.46 678.76 1035.07 1487.33 2051.37
NET WORKING CAPITAL 57.60 131.03 228.79 387.05 621.74 954.97 1382.81 1954.57
CURRENT RATIO 3.18 5.15 7.07 9.63 12.66 16.12 20.54 25.61
CURRENT RATIO (Without TL instl) 3.18 5.15 7.07 9.63 12.66 16.12 20.54 25.61
TOL/TNW 3.77 1.69 0.76 0.37 0.19 0.10 0.05 0.04

28
Cash Flow Statement: (Rs. In lakhs)
CASH FLOW STATEMENT
(Amount in INR in lakhs unless otherwise stated)
3/31/202 3/31/202 3/31/202 3/31/202 3/31/202 3/31/203 3/31/203 3/31/203
Particulars 5 6 7 8 9 0 1 2
Cash Flow From Operating Activities
Profit Before Tax 51.24 105.72 179.32 275.74 396.51 551.23 699.65 872.58
Add: depreciation & Amortisation 22.49 20.24 18.21 16.39 14.75 13.28 11.95 10.75
Add: Interest Expense 15.77 16.98 14.46 11.34 8.21 5.08 1.95 0.02
Less: Non Operating Income - - - - - - - -
Change in Deferred Tax Liabilities - - - - - - - -

Changes in Working Capital:

Adjustment for (Increase)/Decrease in Current Assets
Change in Current Investments - (1.00) (4.00) (5.00) (5.00) (5.00) (5.00) (10.00)
Change in Receivables (1.78) (0.45) (0.54) (0.66) (0.79) (0.96) (0.80) (0.93)
Change in Inventory (9.11) (1.77) (2.06) (2.34) (2.71) (3.05) (2.15) (2.40)
Change in Other Current Assets - - - - - - -

Adjustment for Increase/(Decrease) in Current

Liabilities
Change in Short Term Borrowing - - - - - - - -
Change in Sundry Creditors - 5.19 6.15 7.16 8.46 9.84 7.59 8.67

Less: Taxes paid (15.99) (37.38) (63.41) (97.50) (140.21) (194.91) (247.40) (308.55)

Net Cash Flow from Operating Activities 62.62 107.53 148.14 205.13 279.23 375.50 465.80 570.16

Cash Flow From Investing Activities

Investment in Fixed Assets/PPE - - - - - - -
Investment & deposits - - - - - - -
Other Non Current Assets - - - - - - -
29
Non Operating Income - - - - - - -

Net Cash Flow from Investing Activities - - - - - - - -

Cash Flow From Financing Activities

Share Capital - - - - - - -
Term Loan from bank - -15.15 -36.36 -36.36 -36.36 -36.36 -36.36 -3.03
Interest Expense (15.77) (16.98) (14.46) (11.34) (8.21) (5.08) (1.95) (0.02)

Net Cash Flow from Financing Activities (15.77) (32.13) (50.83) (47.70) (44.57) (41.45) (38.32) (3.05)

Increase/(Decrease) in Cash & Cash Equivalents 78.38 75.40 97.31 157.43 234.65 334.05 427.48 567.11
Cash & Cash Equivalents at the Beginning of Year 73.08 148.48 245.79 403.22 637.88 971.93 1399.40 1966.51
Cash & Cash Equivalents at the End of Year 151.46 223.88 343.10 560.65 872.53 1305.98 1826.88 2533.62

30
Employment Generation:

i. Direct employment - 25
ii. Indirect employment - 80

I Surthi Enterprises certify that the information’s contents as above furnished by me/us are
true to the best of my /our knowledge and belief and nothing material has been concealed.

Signature of Applicant

Date: 03-07-2024

Place: Hyderabad, Telangana

27